Casino companies around the United States are working hard to bring in revenue right now. Some are being forced to lay off a huge number of their employees as a way to cut down on costs. New reports are now surfacing that indicate Las Vegas Sands plans to continue paying its workers through October.
It’s great news for the employees of this company. Some are surprised at the news, considering the recent revenue reports on this major casino company. Today, we’re going to look at some of the strategies that LVS has planned to survive the next few months.
Let’s get into it!
Nevada’s Casino Companies Continue to Lose Revenue
If you told some of the officials within Nevada’s biggest casino companies in January that the Las Vegas Strip would be forced to shut down for months, they probably would have laughed. It seemed almost impossible at the beginning of this year. For almost three months, however, that’s exactly what happened.
As Covid-19 started to spread throughout the United States, leaders in Nevada began looking at safety plans. Eventually, the decision was made to shut down all of the casinos in the state. At that time it wasn’t entirely clear how big of an impact this would have.
The effects of the casino shutdown became clear right away. The state’s tourism industry immediately shut down. Many local businesses that were tied to this tourism industry began losing an incredible amount of money.
As we’ve already covered, Nevada’s casinos were allowed to reopen on June 4th. Since that time, rates of tourism here have fluctuated. This week, reports on gambling revenue in Nevada for the month of June were released. As many predicted, the casinos here earned considerably less than they did in June of 2019.
Las Vegas Sands also recently released their revenue reports for 2020’s second-quarter. Company officials announced that revenue was down 97% from the same three months last year. Some felt this drop in revenue would result in major job layoffs.
Interestingly, that doesn’t appear to be the case.
Las Vegas Sands Will Pay Workers Through October 31st
The US casino industry is in a very unusual position. Some casino companies are now focusing much more on their online gambling platforms. Others are trying to improve their safety measures to make casinos more appealing to players.
Of course, as revenue continues to drop, casino companies are being forced to take more drastic measures. Many are now laying off thousands of workers around the country. It’s sad news for many who rely entirely on these gambling venues for employment.
Not every casino company is taking these measures, though. This week, Las Vegas Sands CEO Sheldon Adelson released an official statement that confirms the company’s commitment to its employees. Here’s what the company is promising.
“This pandemic has not only changed how our business operates; it has changed almost everything about our daily lives,” the statement said. “What has not changed is our commitment to you.”
Incredibly, Las Vegas Sands has announced that it will pay all of its employees until at least October 31st. Hope is that by then, revenue figures will be significantly higher than they currently are. It’s great news seeing LVS committed to its employees.
As of now, Las Vegas Sands seems to be the only US casino company that has not laid off its workers. We’ll need to wait and see how this company manages to increase its revenue flow over the next couple of weeks.
All Atlantic City Casinos Are Now Open to the Public
Las Vegas has been open for almost two months. Over in Atlantic City, things are just finally starting to come together. Governor Phil Murphy started allowing casinos in New Jersey to reopen in early July. Now, every casino in this city is now open again.
The Borgata Hotel-Casino officially opened its doors this past Sunday. As many already know, this casino is the biggest revenue-earner in Atlantic City. Some experts feel that the opening of this venue will help to boost tourism in this city.
Unfortunately, not all of the casino companies here are not taking the same approach as Las Vegas Sands. Some are being forced to lay off a huge number of workers. Many unions are now calling for better job safety for casino employees.
Infection rates of Covid-19 continue to increase around the country. While this happens, fewer people around the country are interested in traveling. This means that casino companies are likely to continue losing money.
Everyone wants to see things get back to normal. The US casino industry is in a very unusual position right now and some feel it may never truly get back to normal. Hope is that casinos find new and effective ways to increase revenue and keep their workers employed.
Are you surprised that Las Vegas Sands is taking this approach? Let us know in the comments section below!